SimCorp, a leading provider of integrated, front-to-back, multi-asset investment management solutions and services to the world’s largest buy-side institutions, today announces the successful SFTR go live at PGGM, one of Europe’s largest pension funds, with asset of EUR 252 billion*. Using SimCorp’s SFTR cloud solution in partnership with deltaconX, PGGM has witnessed a smooth and successful transition in the first month of the SFTR go live, processing over 320 trades and over 590 valuations. In addition, all reports have been fully-automated, submitted and accepted by the Trade Repository, with no manual intervention required.
Barry Vrijssen, Manager Operations at PGGM comments: “We’re extremely pleased with the first month of the SFTR go live. So far we have been able to report to T+1 requirements by 12pm each day, with 100% TR acceptance rates and without any additional manual work. As regulations go, the collaboration with SimCorp has made SFTR compliance a much simpler process and almost a non-event of going live”.
With the arrival of new measures following Covid-19, the final phases of implementation were carried out by SimCorp remotely, maintaining operational efficiency and without compromise to quality. As of go live, SimCorp is supporting PGGM across all instruments from repos to security lending as part of a market-standard solution. The global vendor has also worked with PGGM to deliver customization for the coverage of cleared repos, an important business line at PGGM following its recent success, as the first pension fund in Europe to centrally clear repos at EUREX.
Central to the success of PGGM’s SFTR reporting and operational capability, is the foundation provided by SimCorp Dimension’s integrated Investment Book of Record (IBOR), which delivers PGGM a trusted golden source for all reporting data. Built around the operational data available in its IBOR, SimCorp’s SFTR reporting solution sees PGGM benefit from the same highly automated daily report processes, it has in place for repo and security lending trading and collateral operations.
Additionally, PGGM has been able to leverage SimCorp’s IBOR for superior reporting quality, including complete validation of trade data against the regulatory rule set, and a consistent overview across all business processes. One IBOR for both operations and reporting has also enabled PGGM to fully focus its resources on SFTR related changes concerning only data management processes, instead of technical aspects of the regulation, especially the sourcing of new data for the 155 fields required by the regulation.
Serving 4.4. million members, PGGM has taken a proactive stance to the SFTR regulation from the very beginning, working with SimCorp as a pilot client in October 2019. SimCorp’s SFTR reporting solution was officially launched, five months ahead of the original go live date, offering buy-side clients an efficient and integrated solution for SFTR transaction reporting, together with deltaconX AG’s regulatory platform. In close collaboration, teams from both entities worked to ensure the solution was in place, even prior to the initial April 14th 2020 launch date, with User Acceptance Testing (UAT) taking place as early as January 2020.
Barry Vrijssen, Manager Operations at PGGM adds: “Having worked with SimCorp for a number of years, including on regulatory support for both EMIR and MiFIR, we knew when SFTR came along, that it made sense to have one source of data for both reporting and operational workflows. SimCorp’s consolidated approach, integrated Investment Book of Record (IBOR), market-standard solution and ability to customize to our unique needs, have been critical to our success.”
With data being a critical concern for many buy-side firms, the burden of regulatory oversight looms heavier on already lean resources. To alleviate this headache and as part of its drive towards a service-oriented approach, SimCorp’s SFTR reporting solution takes on the responsibility and maintenance of compliance, as a managed service. This includes capturing and implementing all regulatory changes, with seamless upgrades. As an existing client of SimCorp’s regulatory services, PGGM has already seen the advantages of this with both EMIR and MiFIR regulations. The addition of SFTR further frees PGGM’s resources, enabling it to truly focus on its core business.
Carsten Kunkel, Head of SimCorp Global Center of Regulatory Excellence comments: “We are delighted that PGGM has realized the vision that we had in mind, when creating SimCorp’s SFTR reporting solution. By delivering the solution through a highly automated and consolidated platform, with one source of data that serves both operations and reporting, we effectively enable clients like PGGM, to stay ahead of the game. Additionally, we can now see in action, the value of fusing together cloud technologies and managed services. This goes beyond cost efficiencies, enabling firms to concentrate on achieving alpha. A vital advantage in today’s buy-side industry”.
Thomas Buk, Managing Director at deltaconX AG adds: “Both SimCorp and deltaconX have been passionate about delivering a complete and value-adding solution to meet the needs of buy-side clients, as they deal with the continual churn of regulations. SimCorp’s SFTR reporting solution and managed service is a result of our mutual commitment and timely response to tackling SFTR. We are pleased to contribute towards PGGM’ successful transition to SFTR compliance and look forward to supporting more buy-side firms, as they look to effectively overcome the regulatory burden.”
* AUM recorded as at 31 December 2019